New Lawsuit Filed Against ESM Threatens Further Bailout Fund Delay

Just as we were complaining about lack of newsflow, here comes Germany, coincidentally just as Merkel comes back from vacation, with an update from Karlsruhe that the Constitutional court, which may reject the ESM as is in its September 12th decision, will likely be delayed even more following the filing of a brand new lawsuit challenging the constitutionality of the ESM.

The Constitutional Court in Karlsruhe has received a further appeal against the euro rescue package, which could upset the timetable for the euro rescue. According to information from Reuters Online, a group of plaintiffs to the € critic Professor Markus Kerber has filed a constitutional complaint, including an emergency petition. The key message is: Since the last ten days at the European Court in Luxembourg, the complaint is similar to an Irish MPs to decide, the German judges would wait until the spoke on the matter higher court judgment. The original date expected for an announcement, the 12th September, at which they would decide on the fast track in terms of admissibility of ESM and Fiscal Pact was likely untenable.

The German Constitutional Court had just last month on the 12th September date as agreed. They argued that for a long time to fast-track decision-making so that, should the decision to endure. An opinion, the court could not be reached until now.

The decision of the Federal Constitutional Court is of crucial importance for the euro bailout policy. Without the consent of the judge can not pay Germany its financial share of the bailout ESM. This marks the beginning of the most important instrument on ice rescue. Since the middle of another bailout EFSF are almost exhausted, lacking the euro countries a tool to combat the crisis. The plans for the ECB bond purchases will depend on the start of the ESM. ECB chief Mario Draghi has linked its approval of bond purchases in mind that even the bailout buys bonds.

I fail to see how a court external to Germany can prevent Germans simply deciding for themselves if Germany's own constitution would need to be changed to accomodate new European institutions.

The Germans may have lost every trace of real sovereignty and, increasingly, unlimited future purchasing power by joining EMU, but some things any country can unilaterally decide for itself at anytime.

It would be like trying to dictate to the US Supreme Court on if/whether/when they are allowed to change their Constitution based on when the International Court of Justice or UN proposes its own changes.

Yes, that is why Geithner was on Sylt Island recently, it is believed that he asked German Finance Minister Schauble to ensure that any crisis that happens in Europe happen AFTER the election (mentione in Barron's over the weekend).

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Germans do not want to pay, however they have money to pay. Seems they do not want Euro any more, but wait a minute -- noone has a clue how to reverse the process. My bet is that they will find a way to pump some money. It will be no different that Jap, US of A, UK etc. - there is no other way.

The Irish court kicked it off to the European Court of Justice (ECJ) on 3 August, aksing the ECJ to rule on the compatibility of ESM with existing European treaties. In all European Union countries, the rulings of the ECJ have legal precedence. So in Germany the argument is now that the German Constitutional Court needs to wait and see what the ECJ says in the Pringle case before the German court can give its own ruling.

:> They should be free to use gold, silver, or other currencies with no legal restrictions or punitive taxation standing in the way. Restoring the monetary system envisioned by the Constitution is the only way to ensure the economic security of the American people. <:

the slewiePlankTM YaY!!!

prez0 better not take a nappy on this idea, if he wants to keep michelle happy fo4mo years

"The United Nations is Zionism. It is the super governmentmentioned many times in the Protocols of the Learned Elders ofZion, promulgated between 1897 and 1905."Henry Klein, New York, Jewish Lawyer,in Zionism Rules the World, 1948.

Isn't this why Merkel "gave in" on the Eurobond issue? She knew that the Constitutional court would rule against the ESM and bailouts via that mechanism. The German's don't give a shit what the ECJ says frankly, they will make their own decision independently and then live by it.

This is all designed to happen. The Germans will rule against the ESM which will crush the Euro increasing Germany's exports even more - everybody will be driving German cars soon. The zone won't break up, way too much political capital has been spent and way, way too much money to be made. That doesn't even consider the control issues, central planning (as long as its Germany) is where the EZ is headed - clearly.

Germany is in the driver's seat as usual, they will get the most out of this for the elite class within Germany and they will do it on the backs of the rest of Europe - Thank you very much. The only way out for the subserviant countries is back to their own currency and out of the EZ completely! The view is worth climb in this case because otherwise it is debt slavery forever.

Germany wants to make sure that France hits the hot seat before any resolution is really brought to bear, Spain and Italy are already impotent in every sense. This leaves France as the only opposition to Germany's power grab, they know if they wait long enough France is next on the list - they'll wait. A dangerous game because Germany would be the next in line and their balance sheet is hyper-leveraged (but they are growing exports) - its a risk-reward thing, obvioiusly they believe this is the right path to take.

Its all about control, and the Germans are (just a little) very controlling people - they like things done their way. If the masses actually figure out what's happening to them and their countries we'll have another war in Europe and the Germans (as usual) will be right in the middle of it. Funny thing is, most of their enemies would be using the German weapons! The Greeks could use their recently purchased German submarines (or the French fighter jets).

Question is, can Germany pull this off without destroying the Eurozone and creating another war? Nationalism is on the rise in every EZ country as elections have proven, this is exactly where Europe was prior to WWII. In fact, WWII was brought on by a fundamental problem: Debt that could NEVER be paid back. Short of a history lesson the parallels are incredible, especially if you peel away the rhetoric and look at the reality.

The next two months will lead the EZ into chaos as Germany continues to drive a hard bargain and make demands that eliminate any sovereignty and render completely impotent local Gubmint and authority. This is the way to go, they are clearly convinced. More Euro (Germany) is the answer, you can hear it in all the rhetoric coming out of Brussels, except for Nigel Farage maybe...

Short the Eurozone until September, early October and then pull all your money out of the system. Between now and them keep stacking!

This new challenge could delay the ESM, but I don't think it will. Constitutional courts in democratic countries are rubber stamps for the legislature and executive. The judicial branch is part of the government and acts to increase the government's and its own power at the expense of citizens.

The German Constitutional Court will approve the ESM in plenty of time. If it doesn't, the ECB will step in to monetize PIIGs debts with the tacit approval of the German politicians while the supposedly hawkish Bundesbank looks the other way.

The money printing will continue as long as the Swiss are able to hold up the value of the euro through SNB purchases in the open market.

I wonder if Frau Merkel's golf game is at least as good as Obama's. On second thought, überhaupt nicht. If Obama is voted out of office, he's probably got a good shot on making the cut on the PGA tour.